UPSC CSE Prelims
Question 40
In India, other than ensuring that public funds are used efficiently and for intended purpose, what is the importance of the office of the Comptroller and Auditor General (CAG)?
- CAG exercises exchequer control on behalf of the Parliament when the President of India declares national emergency/financial emergency.
- CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee.
- Information from CAG reports can be used by investigating agencies to press charges against those who have violated the law while managing public finances.
- While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law.
Which of the statements given above is/are correct?
View correct answer and explanation
Correct answer: C
Correct Option: C
Explanation: CAG audits public spending and reports findings to legislatures; the PAC examines reports and law-enforcement bodies may use the findings.
Statement/Item-wise Analysis:
1: Incorrect - CAG conducts post-expenditure audit; it is not a pre-expenditure exchequer controller during emergencies.
2: Correct - PAC examines CAG audit reports concerning government accounts and programmes.
3: Correct - Investigators may use factual evidence from CAG reports in legally appropriate proceedings.
4: Incorrect - CAG has audit authority, not judicial power to prosecute government-company officials.
Option-wise Analysis:
A: Incorrect - includes incorrect items 1, 4; omits correct item 2.
B: Incorrect - omits correct item 3.
C: Correct - includes exactly the valid statements/items and excludes the invalid ones.
D: Incorrect - includes incorrect items 1, 4.